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Public Act 102-0626


 

Public Act 0626 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0626
 
SB1697 EnrolledLRB102 15405 RJF 20768 b

    AN ACT concerning finance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Grant Accountability and Transparency Act
is amended by changing Sections 20, 25, and 45 as follows:
 
    (30 ILCS 708/20)
    Sec. 20. Adoption of federal rules applicable to grants.
    (a) On or before July 1, 2016, the Governor's Office of
Management and Budget, with the advice and technical
assistance of the Illinois Single Audit Commission, shall
adopt rules which adopt the Uniform Guidance at 2 CFR 200. The
rules, which shall apply to all State and federal pass-through
awards effective on and after July 1, 2016, shall include the
following:
        (1) Administrative requirements. In accordance with
    Subparts B through D of 2 CFR 200, the rules shall set
    forth the uniform administrative requirements for grant
    and cooperative agreements, including the requirements for
    the management by State awarding agencies of federal grant
    programs before State and federal pass-through awards have
    been made and requirements that State awarding agencies
    may impose on non-federal entities in State and federal
    pass-through awards.
        (2) Cost principles. In accordance with Subpart E of 2
    CFR 200, the rules shall establish principles for
    determining the allowable costs incurred by non-federal
    entities under State and federal pass-through awards. The
    principles are intended for cost determination, but are
    not intended to identify the circumstances or dictate the
    extent of State or federal pass-through participation in
    financing a particular program or project. The principles
    shall provide that State and federal awards bear their
    fair share of cost recognized under these principles,
    except where restricted or prohibited by State or federal
    law.
        (3) Audit and single audit requirements and audit
    follow-up. In accordance with Subpart F of 2 CFR 200 and
    the federal Single Audit Act Amendments of 1996, the rules
    shall set forth standards to obtain consistency and
    uniformity among State and federal pass-through awarding
    agencies for the audit of non-federal entities expending
    State and federal awards. These provisions shall also set
    forth the policies and procedures for State and federal
    pass-through entities when using the results of these
    audits.
        The provisions of this item (3) do not apply to
    for-profit subrecipients because for-profit subrecipients
    are not subject to the requirements of 2 CFR 200, Subpart
    F, Audits of States, Local and Non-Profit Organizations.
    Audits of for-profit subrecipients must be conducted
    pursuant to a Program Audit Guide issued by the Federal
    awarding agency. If a Program Audit Guide is not
    available, the State awarding agency must prepare a
    Program Audit Guide in accordance with the 2 CFR 200,
    Subpart F Audit Requirements - Compliance Supplement.
    For-profit entities are subject to all other general
    administrative requirements and cost principles applicable
    to grants.
    (b) This Act addresses only State and federal pass-through
auditing functions and does not address the external audit
function of the Auditor General.
    (c) For public institutions of higher education, the
provisions of this Section apply only to awards funded by
State appropriations and federal pass-through awards from a
State agency to public institutions of higher education.
Federal pass-through awards from a State agency to public
institutions of higher education are governed by and must
comply with federal guidelines under 2 CFR 200.
    (d) The State grant-making agency is responsible for
establishing requirements, as necessary, to ensure compliance
by for-profit subrecipients. The agreement with the for-profit
subrecipient shall describe the applicable compliance
requirements and the for-profit subrecipient's compliance
responsibility. Methods to ensure compliance for State and
federal pass-through awards made to for-profit subrecipients
shall include pre-award, audits, monitoring during the
agreement, and post-award audits. The Governor's Office of
Management and Budget shall provide such advice and technical
assistance to the State grant-making agency as is necessary or
indicated.
(Source: P.A. 99-523, eff. 6-30-16; 100-676, eff. 1-1-19.)
 
    (30 ILCS 708/25)
    Sec. 25. Supplemental rules. On or before July 1, 2017,
the Governor's Office of Management and Budget, with the
advice and technical assistance of the Illinois Single Audit
Commission, shall adopt supplemental rules pertaining to the
following:
        (1) Criteria to define mandatory formula-based grants
    and discretionary grants.
        (2) The award of one-year grants for new applicants.
        (3) The award of competitive grants in 3-year terms
    (one-year initial terms with the option to renew for up to
    2 additional years) to coincide with the federal award.
        (4) The issuance of grants, including:
            (A) public notice of announcements of funding
        opportunities;
            (B) the development of uniform grant applications;
            (C) State agency review of merit of proposals and
        risk posed by applicants;
            (D) specific conditions for individual recipients
        (including the use of a fiscal agent and additional
        corrective conditions);
            (E) certifications and representations;
            (F) pre-award costs;
            (G) performance measures and statewide prioritized
        goals under Section 50-25 of the State Budget Law of
        the Civil Administrative Code of Illinois, commonly
        referred to as "Budgeting for Results"; and
            (H) for mandatory formula grants, the merit of the
        proposal and the risk posed should result in
        additional reporting, monitoring, or measures such as
        reimbursement-basis only.
        (5) The development of uniform budget requirements,
    which shall include:
            (A) mandatory submission of budgets as part of the
        grant application process;
            (B) mandatory requirements regarding contents of
        the budget including, at a minimum, common detail line
        items specified under guidelines issued by the
        Governor's Office of Management and Budget;
            (C) a requirement that the budget allow
        flexibility to add lines describing costs that are
        common for the services provided as outlined in the
        grant application;
            (D) a requirement that the budget include
        information necessary for analyzing cost and
        performance for use in Budgeting for Results; and
            (E) caps on the amount of salaries that may be
        charged to grants based on the limitations imposed by
        federal agencies.
        (6) The development of pre-qualification requirements
    for applicants, including the fiscal condition of the
    organization and the provision of the following
    information:
            (A) organization name;
            (B) Federal Employee Identification Number;
            (C) Data Universal Numbering System (DUNS) number;
            (D) fiscal condition;
            (E) whether the applicant is in good standing with
        the Secretary of State;
            (F) past performance in administering grants;
            (G) whether the applicant is on the Debarred and
        Suspended List maintained by the Governor's Office of
        Management and Budget;
            (H) whether the applicant is on the federal
        Excluded Parties List; and
            (I) whether the applicant is on the Sanctioned
        Party List maintained by the Illinois Department of
        Healthcare and Family Services.
    Nothing in this Act affects the provisions of the Fiscal
Control and Internal Auditing Act nor the requirement that the
management of each State agency is responsible for maintaining
effective internal controls under that Act.
    For public institutions of higher education, the
provisions of this Section apply only to awards funded by
State appropriations and federal pass-through awards from a
State agency to public institutions of higher education.
(Source: P.A. 100-676, eff. 1-1-19; 100-997, eff. 8-20-18;
101-81, eff. 7-12-19.)
 
    (30 ILCS 708/45)
    Sec. 45. Applicability.
    (a) Except as otherwise provided in this Section, the The
requirements established under this Act apply to State
grant-making agencies that make State and federal pass-through
awards to non-federal entities. These requirements apply to
all costs related to State and federal pass-through awards.
The requirements established under this Act do not apply to
private awards, to allocations of State revenues paid over by
the Comptroller to units of local government and other taxing
districts pursuant to the State Revenue Sharing Act from the
Local Government Distributive Fund or the Personal Property
Tax Replacement Fund, or to allotments of State motor fuel tax
revenues distributed by the Department of Transportation to
units of local government pursuant to the Motor Fuel Tax Law
from the Motor Fuel Tax Fund or the Transportation Renewal
Fund.
    (a-5) Nothing in this Act shall prohibit the use of State
funds for purposes of federal match or maintenance of effort.
    (b) The terms and conditions of State, federal, and
pass-through awards apply to subawards and subrecipients
unless a particular Section of this Act or the terms and
conditions of the State or federal award specifically indicate
otherwise. Non-federal entities shall comply with requirements
of this Act regardless of whether the non-federal entity is a
recipient or subrecipient of a State or federal pass-through
award. Pass-through entities shall comply with the
requirements set forth under the rules adopted under
subsection (a) of Section 20 of this Act, but not to any
requirements in this Act directed towards State or federal
awarding agencies, unless the requirements of the State or
federal awards indicate otherwise.
    When a non-federal entity is awarded a cost-reimbursement
contract, only 2 CFR 200.330 through 200.332 are incorporated
by reference into the contract. However, when the Cost
Accounting Standards are applicable to the contract, they take
precedence over the requirements of this Act unless they are
in conflict with Subpart F of 2 CFR 200. In addition, costs
that are made unallowable under 10 U.S.C. 2324(e) and 41
U.S.C. 4304(a), as described in the Federal Acquisition
Regulations, subpart 31.2 and subpart 31.603, are always
unallowable. For requirements other than those covered in
Subpart D of 2 CFR 200.330 through 200.332, the terms of the
contract and the Federal Acquisition Regulations apply.
    With the exception of Subpart F of 2 CFR 200, which is
required by the Single Audit Act, in any circumstances where
the provisions of federal statutes or regulations differ from
the provisions of this Act, the provision of the federal
statutes or regulations govern. This includes, for agreements
with Indian tribes, the provisions of the Indian
Self-Determination and Education and Assistance Act, as
amended, 25 U.S.C. 450-458ddd-2.
    (c) State grant-making agencies may apply subparts A
through E of 2 CFR 200 to for-profit entities, foreign public
entities, or foreign organizations, except where the awarding
agency determines that the application of these subparts would
be inconsistent with the international obligations of the
United States or the statute or regulations of a foreign
government.
    (d) 2 CFR 200.101 specifies how 2 CFR 200 is applicable to
different types of awards. The same applicability applies to
this Act.
    (e) (Blank).
    (f) For public institutions of higher education, the
provisions of this Act apply only to awards funded by State
appropriations and federal pass-through awards from a State
agency to public institutions of higher education. This Act
shall recognize provisions in 2 CFR 200 as applicable to
public institutions of higher education, including Appendix
III of Part 200 and the cost principles under Subpart E.
    (g) Each grant-making agency shall enhance its processes
to monitor and address noncompliance with reporting
requirements and with program performance standards. Where
applicable, the process may include a corrective action plan.
The monitoring process shall include a plan for tracking and
documenting performance-based contracting decisions.
(Source: P.A. 100-676, eff. 1-1-19; 100-863, eff. 8-14-18;
101-81, eff. 7-12-19.)
 
    Section 10. The Downstate Public Transportation Act is
amended by changing Sections 2-3, 2-4, 2-5, 2-5.1, 2-7, 2-9,
2-10, 2-11, 2-12, 2-13, 2-14, 2-15.2, 2-15.3, and 2-17 as
follows:
 
    (30 ILCS 740/2-3)  (from Ch. 111 2/3, par. 663)
    Sec. 2-3. (a) As soon as possible after the first day of
each month, beginning July 1, 1984, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, from the
General Revenue Fund to a special fund in the State Treasury
which is hereby created, to be known as the Downstate Public
Transportation Fund, an amount equal to 2/32 (beginning July
1, 2005, 3/32) of the net revenue realized from the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the Use
Tax Act, and the Service Use Tax Act from persons incurring
municipal or county retailers' or service occupation tax
liability for the benefit of any municipality or county
located wholly within the boundaries of each participant,
other than any Metro-East Transit District participant
certified pursuant to subsection (c) of this Section during
the preceding month, except that the Department shall pay into
the Downstate Public Transportation Fund 2/32 (beginning July
1, 2005, 3/32) of 80% of the net revenue realized under the
State tax Acts named above within any municipality or county
located wholly within the boundaries of each participant,
other than any Metro-East participant, for tax periods
beginning on or after January 1, 1990. Net revenue realized
for a month shall be the revenue collected by the State
pursuant to such Acts during the previous month from persons
incurring municipal or county retailers' or service occupation
tax liability for the benefit of any municipality or county
located wholly within the boundaries of a participant, less
the amount paid out during that same month as refunds or credit
memoranda to taxpayers for overpayment of liability under such
Acts for the benefit of any municipality or county located
wholly within the boundaries of a participant.
    Notwithstanding any provision of law to the contrary,
beginning on July 6, 2017 (the effective date of Public Act
100-23), those amounts required under this subsection (a) to
be transferred by the Treasurer into the Downstate Public
Transportation Fund from the General Revenue Fund shall be
directly deposited into the Downstate Public Transportation
Fund as the revenues are realized from the taxes indicated.
    (b) As soon as possible after the first day of each month,
beginning July 1, 1989, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, from the General Revenue Fund to a
special fund in the State Treasury which is hereby created, to
be known as the Metro-East Public Transportation Fund, an
amount equal to 2/32 of the net revenue realized, as above,
from within the boundaries of Madison, Monroe, and St. Clair
Counties, except that the Department shall pay into the
Metro-East Public Transportation Fund 2/32 of 80% of the net
revenue realized under the State tax Acts specified in
subsection (a) of this Section within the boundaries of
Madison, Monroe and St. Clair Counties for tax periods
beginning on or after January 1, 1990. A local match
equivalent to an amount which could be raised by a tax levy at
the rate of .05% on the assessed value of property within the
boundaries of Madison County is required annually to cause a
total of 2/32 of the net revenue to be deposited in the
Metro-East Public Transportation Fund. Failure to raise the
required local match annually shall result in only 1/32 being
deposited into the Metro-East Public Transportation Fund after
July 1, 1989, or 1/32 of 80% of the net revenue realized for
tax periods beginning on or after January 1, 1990.
    (b-5) As soon as possible after the first day of each
month, beginning July 1, 2005, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, from the
General Revenue Fund to the Downstate Public Transportation
Fund, an amount equal to 3/32 of 80% of the net revenue
realized from within the boundaries of Monroe and St. Clair
Counties under the State Tax Acts specified in subsection (a)
of this Section and provided further that, beginning July 1,
2005, the provisions of subsection (b) shall no longer apply
with respect to such tax receipts from Monroe and St. Clair
Counties.
    Notwithstanding any provision of law to the contrary,
beginning on July 6, 2017 (the effective date of Public Act
100-23), those amounts required under this subsection (b-5) to
be transferred by the Treasurer into the Downstate Public
Transportation Fund from the General Revenue Fund shall be
directly deposited into the Downstate Public Transportation
Fund as the revenues are realized from the taxes indicated.
    (b-6) As soon as possible after the first day of each
month, beginning July 1, 2008, upon certification by the
Department of Revenue, the Comptroller shall order transferred
and the Treasurer shall transfer, from the General Revenue
Fund to the Downstate Public Transportation Fund, an amount
equal to 3/32 of 80% of the net revenue realized from within
the boundaries of Madison County under the State Tax Acts
specified in subsection (a) of this Section and provided
further that, beginning July 1, 2008, the provisions of
subsection (b) shall no longer apply with respect to such tax
receipts from Madison County.
    Notwithstanding any provision of law to the contrary,
beginning on July 6, 2017 (the effective date of Public Act
100-23), those amounts required under this subsection (b-6) to
be transferred by the Treasurer into the Downstate Public
Transportation Fund from the General Revenue Fund shall be
directly deposited into the Downstate Public Transportation
Fund as the revenues are realized from the taxes indicated.
    (b-7) Beginning July 1, 2018, notwithstanding the other
provisions of this Section, instead of the Comptroller making
monthly transfers from the General Revenue Fund to the
Downstate Public Transportation Fund, the Department of
Revenue shall deposit the designated fraction of the net
revenue realized from collections under the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the Use
Tax Act, and the Service Use Tax Act directly into the
Downstate Public Transportation Fund.
    (c) The Department shall certify to the Department of
Revenue the eligible participants under this Article and the
territorial boundaries of such participants for the purposes
of the Department of Revenue in subsections (a) and (b) of this
Section.
    (d) For the purposes of this Article, beginning in fiscal
year 2009 the General Assembly shall appropriate an amount
from the Downstate Public Transportation Fund equal to the sum
total of funds projected to be paid to the participants
pursuant to Section 2-7. If the General Assembly fails to make
appropriations sufficient to cover the amounts projected to be
paid pursuant to Section 2-7, this Act shall constitute an
irrevocable and continuing appropriation from the Downstate
Public Transportation Fund of all amounts necessary for those
purposes.
    (e) (Blank).
    (f) (Blank).
    (g) (Blank).
    (h) For State fiscal year 2020 only, notwithstanding any
provision of law to the contrary, the total amount of revenue
and deposits under this Section attributable to revenues
realized during State fiscal year 2020 shall be reduced by 5%.
    (i) For State fiscal year 2021 only, notwithstanding any
provision of law to the contrary, the total amount of revenue
and deposits under this Section attributable to revenues
realized during State fiscal year 2021 shall be reduced by 5%.
    (j) Commencing with State fiscal year 2022 programs, and
for each fiscal year thereafter, all appropriations made under
the provisions of this Act shall not constitute a grant
program subject to the requirements of the Grant
Accountability and Transparency Act. The Department shall
approve programs of proposed expenditures and services
submitted by participants under the requirements of Sections
2-5 and 2-11.
(Source: P.A. 100-23, eff. 7-6-17; 100-363, eff. 7-1-18;
100-587, eff. 6-4-18; 100-863, eff. 8-14-18; 101-10, eff.
6-5-19; 101-636, eff. 6-10-20.)
 
    (30 ILCS 740/2-4)  (from Ch. 111 2/3, par. 664)
    Sec. 2-4. The Department shall establish forms for the
reporting of projected and actual operating deficits and
expenses and other required information by the participants,
and has the power to promulgate rules and regulations for the
filing of such reports within the limitations set out in
Sections 2-5, 2-6 and 2-7. Each participant shall be governed
by the rules and regulations established under this Section.
(Source: P.A. 82-783.)
 
    (30 ILCS 740/2-5)  (from Ch. 111 2/3, par. 665)
    Sec. 2-5. Applications.
    (a) Through State fiscal year 2021, each Each participant
making application for grants pursuant to this Article shall
submit to the Department at the time of making such
application, on forms provided by the Department: (1) (a) an
estimate of projected operating deficits and a separate
statement of eligible operating expenses and an estimate of
all projected operating income or revenues; and (2) (b) a
program of proposed expenditures; all such submittals to be
for the period of such grant. The program of proposed
expenditures shall be directly related to the operation,
maintenance or improvement of an existing system of public
transportation serving the residents of the participant, and
shall include the proposed expenditures for eligible operating
expenses.
    For Fiscal Year 1980 grant applications shall be submitted
to the Department within 60 days of the effective date of this
amendatory Act of 1979. Beginning with Fiscal Year 1981 and
thereafter, grant applications shall be submitted to the
Department by April 1 of the preceding fiscal year.
    (b) For Fiscal Year 2022 applications for funding, and for
each fiscal year thereafter, each participant making
application for funding shall submit to the Department by
April 1 of the preceding fiscal year, a program of proposed
expenditures and services on forms provided by the Department,
consisting of the following information: (1) an estimate of
projected operating deficits and a separate statement of
eligible operating expenses and an estimate of all projected
operating income or revenues; and (2) a program of proposed
expenditures and services; all such submittals to be for the
period of such project. The program of proposed expenditures
and services shall be directly related to the operation,
maintenance, or improvement of an existing system of public
transportation serving the residents of the participant, and
shall include the proposed expenditures and services for
eligible operating expenses.
(Source: P.A. 82-783.)
 
    (30 ILCS 740/2-5.1)
    Sec. 2-5.1. Additional requirements.
    (a) Through State fiscal year 2021, any Any unit of local
government that becomes a participant on or after the
effective date of this amendatory Act of the 94th General
Assembly shall, in addition to any other requirements under
this Article, meet all of the following requirements when
applying for grants under this Article:
        (1) The grant application must demonstrate the
    participant's plan to provide general public
    transportation with an emphasis on persons with
    disabilities and elderly and economically disadvantaged
    populations.
        (2) The grant application must demonstrate the
    participant's plan for interagency coordination that, at a
    minimum, allows the participation of all State-funded and
    federally-funded agencies and programs with transportation
    needs in the proposed service area in the development of
    the applicant's public transportation program.
        (3) Any participant serving a nonurbanized area that
    is not receiving Federal Section 5311 funding must meet
    the operating and safety compliance requirements as set
    forth in that federal program.
        (4) The participant is required to hold public
    hearings to allow comment on the proposed service plan in
    all municipalities with populations of 1,500 inhabitants
    or more within the proposed service area.
    (a-5) Any unit of local government that becomes a
participant on or after the effective date of this amendatory
Act of the 102nd General Assembly shall, in addition to any
other requirements under this Article, meet all of the
following requirements when applying for the approval of the
program of proposed expenditures and services under this
Article:
        (1) The program of proposed expenditures and services
    must demonstrate the participant's plan to provide general
    public transportation with an emphasis on persons with
    disabilities and elderly and economically disadvantaged
    populations.
        (2) The program of proposed expenditures and services
    must demonstrate the participant's plan for interagency
    coordination that, at a minimum, allows the participation
    of all State-funded and federally-funded agencies and
    programs with transportation needs in the proposed service
    area in the development of the applicant's public
    transportation program.
        (3) Any participant serving a non-urbanized area that
    is not receiving Federal Section 5311 Program funding must
    meet the operating and safety compliance requirements as
    set forth in that federal program.
        (4) The participant is required to hold public
    hearings to allow comment on the proposed service plan in
    all municipalities with populations of 1,500 inhabitants
    or more within the proposed service area.
    (b) Service extensions by any participant after July 1,
2005 by either annexation or intergovernmental agreement must
meet the 4 requirements of subsection (a).
    (c) In order to receive funding, the Department shall
certify that the participant has met the requirements of this
Section. Funding priority shall be given to service extension,
multi-county, and multi-jurisdictional projects.
    (d) The Department shall develop an annual application
process for existing or potential participants to request an
initial appropriation or an appropriation exceeding the
formula amount found in subsection (b-10) of Section 2-7 for
funding service in new areas in the next fiscal year. The
application shall include, but not be limited to, a
description of the new service area, proposed service in the
new area, and a budget for providing existing and new service.
The Department shall review the application for reasonableness
and compliance with the requirements of this Section, and, if
it approves the application, shall recommend to the Governor
an appropriation for the next fiscal year in an amount
sufficient to provide 65% of projected eligible operating
expenses associated with a new participant's service area or
the portion of an existing participant's service area that has
been expanded by annexation or intergovernmental agreement.
The recommended appropriation for the next fiscal year may
exceed the formula amount found in subsection (b-10) of
Section 2-7.
(Source: P.A. 99-143, eff. 7-27-15.)
 
    (30 ILCS 740/2-7)  (from Ch. 111 2/3, par. 667)
    Sec. 2-7. Quarterly reports; annual audit.
    (a) Any Metro-East Transit District participant shall, no
later than 60 days following the end of each quarter of any
fiscal year, file with the Department on forms provided by the
Department for that purpose, a report of the actual operating
deficit experienced during that quarter. The Department shall,
upon receipt of the quarterly report, determine whether the
operating deficits were incurred in conformity with the
program of proposed expenditures and services approved by the
Department pursuant to Section 2-11. Any Metro-East District
may either monthly or quarterly for any fiscal year file a
request for the participant's eligible share, as allocated in
accordance with Section 2-6, of the amounts transferred into
the Metro-East Public Transportation Fund.
    (b) Each participant other than any Metro-East Transit
District participant shall, 30 days before the end of each
quarter, file with the Department on forms provided by the
Department for such purposes a report of the projected
eligible operating expenses to be incurred in the next quarter
and 30 days before the third and fourth quarters of any fiscal
year a statement of actual eligible operating expenses
incurred in the preceding quarters. Except as otherwise
provided in subsection (b-5), within 45 days of receipt by the
Department of such quarterly report, the Comptroller shall
order paid and the Treasurer shall pay from the Downstate
Public Transportation Fund to each participant an amount equal
to one-third of such participant's eligible operating
expenses; provided, however, that in Fiscal Year 1997, the
amount paid to each participant from the Downstate Public
Transportation Fund shall be an amount equal to 47% of such
participant's eligible operating expenses and shall be
increased to 49% in Fiscal Year 1998, 51% in Fiscal Year 1999,
53% in Fiscal Year 2000, 55% in Fiscal Years 2001 through 2007,
and 65% in Fiscal Year 2008 and thereafter; however, in any
year that a participant receives funding under subsection (i)
of Section 2705-305 of the Department of Transportation Law
(20 ILCS 2705/2705-305), that participant shall be eligible
only for assistance equal to the following percentage of its
eligible operating expenses: 42% in Fiscal Year 1997, 44% in
Fiscal Year 1998, 46% in Fiscal Year 1999, 48% in Fiscal Year
2000, and 50% in Fiscal Year 2001 and thereafter. Any such
payment for the third and fourth quarters of any fiscal year
shall be adjusted to reflect actual eligible operating
expenses for preceding quarters of such fiscal year. However,
no participant shall receive an amount less than that which
was received in the immediate prior year, provided in the
event of a shortfall in the fund those participants receiving
less than their full allocation pursuant to Section 2-6 of
this Article shall be the first participants to receive an
amount not less than that received in the immediate prior
year.
    (b-5) (Blank.)
    (b-10) On July 1, 2008, each participant shall receive an
appropriation in an amount equal to 65% of its fiscal year 2008
eligible operating expenses adjusted by the annual 10%
increase required by Section 2-2.04 of this Act. In no case
shall any participant receive an appropriation that is less
than its fiscal year 2008 appropriation. Every fiscal year
thereafter, each participant's appropriation shall increase by
10% over the appropriation established for the preceding
fiscal year as required by Section 2-2.04 of this Act.
    (b-15) Beginning on July 1, 2007, and for each fiscal year
thereafter, each participant shall maintain a minimum local
share contribution (from farebox and all other local revenues)
equal to the actual amount provided in Fiscal Year 2006 or, for
new recipients, an amount equivalent to the local share
provided in the first year of participation. The local share
contribution shall be reduced by an amount equal to the total
amount of lost revenue for services provided under Section
2-15.2 and Section 2-15.3 of this Act.
    (b-20) Any participant in the Downstate Public
Transportation Fund may use State operating assistance funding
pursuant to this Section to provide transportation services
within any county that is contiguous to its territorial
boundaries as defined by the Department and subject to
Departmental approval. Any such contiguous-area service
provided by a participant after July 1, 2007 must meet the
requirements of subsection (a) of Section 2-5.1.
    (c) No later than 180 days following the last day of the
Fiscal Year each participant shall provide the Department with
an audit prepared by a Certified Public Accountant covering
that Fiscal Year. For those participants other than a
Metro-East Transit District, any discrepancy between the funds
grants paid and the percentage of the eligible operating
expenses provided for by paragraph (b) of this Section shall
be reconciled by appropriate payment or credit. In the case of
any Metro-East Transit District, any amount of payments from
the Metro-East Public Transportation Fund which exceed the
eligible deficit of the participant shall be reconciled by
appropriate payment or credit.
(Source: P.A. 94-70, eff. 6-22-05; 95-708, eff. 1-18-08;
95-906, eff. 8-26-08.)
 
    (30 ILCS 740/2-9)  (from Ch. 111 2/3, par. 669)
    Sec. 2-9. Each program of proposed expenditures and
services shall, in the case of a system of public
transportation owned and operated by a participant, undertake
to meet operating deficits directly. The purchase of service
agreements with a provider of public transportation services
shall constitute an eligible expense Grants to a participant
may be made for services provided through purchase of service
agreements with a provider of public transportation services.
(Source: P.A. 82-783.)
 
    (30 ILCS 740/2-10)  (from Ch. 111 2/3, par. 670)
    Sec. 2-10. Cooperative projects. Nothing in this Act shall
prohibit any participant from including in a program of
proposed expenditures and services funding for a portion of a
cooperative public transportation project or purpose, the
total cost of which is shared among one or more other
participants or other financial contributors, as long as the
residents of the participant are served by any such project or
purpose.
(Source: P.A. 82-783.)
 
    (30 ILCS 740/2-11)  (from Ch. 111 2/3, par. 671)
    Sec. 2-11. The Department shall review and approve or
disapprove within 45 days of receipt each program of proposed
expenditures and services submitted by any participant
pursuant to the provisions of Section 2-5. Notwithstanding the
above, in the event the Department is prevented from
processing applications or certifying that a participant meets
the requirements of this Section due to extraordinary
circumstances beyond its control, the certification deadline
for that application shall be stayed until the Department is
able to process and certify the same. Notice from the
Department, as well as an explanation of the extraordinary
circumstances, shall be provided to each participant affected
by such delay. The Department may disapprove a program of
proposed expenditures and services or portions thereof only
for the following reasons:
    (a) A finding that expenditures are proposed for projects
or purposes which are not in compliance with Section 2-5; or
    (b) A finding that expenditures are proposed for projects
or purposes which are in conflict with established
comprehensive transportation plans for a participant or a
region of which it is a part; or
    (c) In Fiscal Year 1980, with regard to the participants
which have not received State operating assistance prior to
the effective date of this amendatory Act of 1979, a finding by
the Department that a proposed program submitted by such
participant or any portion thereof is not in the public
interest in that levels or kinds of service proposed exceeds
the reasonable needs of the community served by such
participant as demonstrated in the transportation development
plan for such community or other studies and information
available to the Department.
(Source: P.A. 82-783.)
 
    (30 ILCS 740/2-12)  (from Ch. 111 2/3, par. 672)
    Sec. 2-12. Disapproval of program. Upon disapproval of any
program of proposed expenditures and services, the Department
shall so notify the chief official of the participant having
submitted such program, setting forth in detail the reasons
for such disapproval. Thereupon, any such participant shall
have 45 days from the date of receipt of such notice of
disapproval by the Department to submit to the Department one
or more amended programs of proposed expenditures and
services.
(Source: P.A. 82-783.)
 
    (30 ILCS 740/2-13)  (from Ch. 111 2/3, par. 673)
    Sec. 2-13. Review of amended programs. The Department
shall review each amended program of proposed expenditures and
services submitted to it pursuant to the provisions of Section
2-12 and may disapprove any such amended program of proposed
expenditures and services only for the reasons and in the same
fashion set forth in Section 2-11.
(Source: P.A. 82-783.)
 
    (30 ILCS 740/2-14)  (from Ch. 111 2/3, par. 674)
    Sec. 2-14. Grants.
    (a) Upon a determination by the Department that any
initial or amended program of proposed expenditures is in
compliance with the provisions of this Act, and upon approval
thereof, the Department shall enter into one or more grant
agreements with and shall make grants to that participant as
necessary to implement the adopted program of expenditures.
    (b) All grants by the Department pursuant to this Act
shall be administered upon such conditions as the Secretary of
Transportation shall determine, consistent with the provisions
and purpose of this Act.
    (c) For State fiscal year 2022 or any fiscal year
thereafter, upon a determination by the Department that any
initial or amended program of proposed expenditure is in
compliance with the provisions of this Act, and upon approval
thereof, the Department shall enter into one or more
agreements with the participant and shall obligate for payment
to that participant as necessary to implement the adopted
program of expenditure.
(Source: P.A. 82-783.)
 
    (30 ILCS 740/2-15.2)
    Sec. 2-15.2. Free services; eligibility.
    (a) Notwithstanding any law to the contrary, no later than
60 days following the effective date of this amendatory Act of
the 95th General Assembly and until subsection (b) is
implemented, any fixed route public transportation services
provided by, or under grant or purchase of service contracts
of, every participant, as defined in Section 2-2.02 (1)(a),
shall be provided without charge to all senior citizen
residents of the participant aged 65 and older, under such
conditions as shall be prescribed by the participant.
    (b) Notwithstanding any law to the contrary, no later than
180 days following the effective date of this amendatory Act
of the 96th General Assembly, but only through State fiscal
year 2021, any fixed route public transportation services
provided by, or under grant or purchase of service contracts
of, every participant, as defined in Section 2-2.02 (1)(a),
shall be provided without charge to senior citizens aged 65
and older who meet the income eligibility limitation set forth
in subsection (a-5) of Section 4 of the Senior Citizens and
Persons with Disabilities Property Tax Relief Act, under such
conditions as shall be prescribed by the participant. The
Department on Aging shall furnish all information reasonably
necessary to determine eligibility, including updated lists of
individuals who are eligible for services without charge under
this Section. Nothing in this Section shall relieve the
participant from providing reduced fares as may be required by
federal law.
(Source: P.A. 99-143, eff. 7-27-15.)
 
    (30 ILCS 740/2-15.3)
    Sec. 2-15.3. Transit services for individuals with
disabilities.     Notwithstanding any law to the contrary, no
later than 60 days following the effective date of this
amendatory Act of the 95th General Assembly, but only through
State fiscal year 2021, all fixed route public transportation
services provided by, or under grant or purchase of service
contract of, any participant shall be provided without charge
to all persons with disabilities who meet the income
eligibility limitation set forth in subsection (a-5) of
Section 4 of the Senior Citizens and Persons with Disabilities
Property Tax Relief Act, under such procedures as shall be
prescribed by the participant. The Department on Aging shall
furnish all information reasonably necessary to determine
eligibility, including updated lists of individuals who are
eligible for services without charge under this Section.
(Source: P.A. 99-143, eff. 7-27-15.)
 
    (30 ILCS 740/2-17)  (from Ch. 111 2/3, par. 678)
    Sec. 2-17. County authorization to provide public
transportation and to receive funds from appropriations to
apply for funding grants in connection therewith. (a) Any
county or counties may, by ordinance, operate or otherwise
provide for public transportation within such county or
counties. In order to so provide for such public
transportation, any county or counties may enter into
agreements with any individual, corporation or other person or
private or public entity to operate or otherwise assist in the
provision of such public transportation services. Upon the
execution of an agreement for the operation of such public
transportation, the operator shall file 3 copies of such
agreement certified by the clerk of the county executing the
same with the Illinois Commerce Commission. Thereafter the
Illinois Commerce Commission shall enter an order directing
compliance by the operator with the provisions of Sections 55a
and 55b of "An Act concerning public utilities", approved June
28, 1921, as amended.
    (b) Any county may apply for, accept and expend moneys
grants, loans or other funds from the State of Illinois or any
department or agency thereof, from any unit of local
government, from the federal government or any department or
agency thereof, or from any other person or entity, for use in
connection with any public transportation provided pursuant to
this Section.
(Source: P.A. 82-783.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/27/2021